Meltem Demirors, CoinShares Chief Strategy Officer, has identified two significant drivers currently driving Bitcoin (BTC)'s market performance. According to her latest comments in a Bloomberg television interview, the causes of Bitcoin's current state are more complex than previously assumed. Rather than being a simple reaction to the banking crisis, the appetite for risk amongst investors and the anticipation of Bitcoin's halving event in April 2020 are reportedly the driving forces.

Despite the macroeconomic environments and resulting pessimism, investors are reallocating towards cryptocurrency according to Demirors. Moreover, Bitcoin's correlation with global equities has declined, currently standing at 12%. The recent Federal Reserve rate hike should have no debilitating effect upon Bitcoin's performance, with its effect more immediately affecting DeFi projects. Demirors reported a decline of around 15% in Bitcoin and Ethereum on-chain activities in April, with stablecoin activity being down by almost 40% during the same period.

With Bitcoin’s natural 'halving' event coming up, investors are likely to remain tempted to search for a safe haven asset among cryptocurrencies. Furthermore, the decline in correlation between Bitcoin and global equities indicates a further distancing from traditional markets and a rise in appeal to investors as a standalone asset, calculated to be a digital safe-haven similar to gold. As it is uncertain as to what extent the traditional banking crisis has impacted the rise of Bitcoin's prices, the two main catalysts driving the current price action are the appetite for risk amongst investors and the anticipation of the upcoming halving event in April 2020.



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